The stronger China feels, the less considerate it is. German investors are now also feeling this painfully. A comment by Georg Anastasiadis.
In its relations with the communist regime in Beijing, the German government has long clung to the principle of “change through trade” – the belief that the integration of the gigantic empire into international economic relations is accompanied by a civilization of Chinese manners. Nothing could have been more wrong: China’s economic rise – and the accompanying Western admiration – rather unleashed a striving for dominance that is reminiscent of the dark times of old Western imperialism. China is threatening renegade Taiwan more and more blatantly with violent integration, Hong Kong is taking action against opponents of the regime more and more unabashedly, and it is confronting the western states more and more, most recently at the meeting of the deputy foreign ministers of China and the USA on Monday.
In the meantime, President Xi feels strong enough to take action against the capital markets, the goodwill of which the red mandarins have long valued. The de facto ban on commercial student tuition this week led to a crash in the shares of large Chinese corporations, which are also in the portfolios of many international investors. The price falls of popular stock market giants such as Alibaba and Tencent have destroyed hundreds of billions of market values and should be an urgent warning to shareholders: Anyone who gets involved with the Chinese dragon is living dangerously. The priority of communist ideology and the party is always more important to Beijing than the protection of property.
This is the next shock for the West and its citizens, but hopefully it will be healing: Regardless of whether it is government, corporate or private investors – there is no longer any room for illusions about China and its intentions.